The renowned American pizza chain Domino’s witnessed a slight downturn in its international same-store sales, registering a 0.1% increase, falling below expectations, largely attributed to pressures in Europe and geopolitical tensions in the Middle East.

 

While Domino’s experienced a robust 2.8% growth in same-store sales in the United States during the fourth quarter, its international outlets saw a marginal 0.1% uptick.

 

Market projections had anticipated a 3.2% growth in international same-store sales for the company.

 

The international same-store sales for Domino’s had shown a 3.3% increase in the previous quarter and a 2.6% rise in the same quarter of 2022.

 

During an investor conference discussing the company’s fourth-quarter financial results, Domino’s Chief Financial Officer (CFO) Sandeep Reddy attributed the slowdown in international same-store sales to pressures in Europe and geopolitical tensions in the Middle East.

 

Reddy noted that the Middle East represented a relatively small portion of the company’s earnings, accounting for less than 3% of its profits.

 

Protests and boycotts impact corporate balance sheets International companies that expressed support for Israel’s attacks on the Gaza Strip and provided aid began facing global boycotts and protests.

 

American restaurant chains such as McDonald’s, Pizza Hut, KFC, and Domino’s, along with European-based companies like Unilever and Nestle, found themselves amidst protest and boycott campaigns.

 

As conflicts escalated in the Middle East, these companies began to feel the financial repercussions, with Starbucks and McDonald’s failing to meet market expectations in their financial results.

 

“Apprehension towards Western brands” McDonald’s fourth-quarter balance sheet indicated that sales in the Middle East were impacted by the regional conflict, while Starbucks executives acknowledged that the conflict in Gaza had a significant impact on customer traffic and sales at their stores in the region.

 

Yum! Brands, the parent company of KFC, Pizza Hut, and Taco Bell, reported lower-than-expected revenue in the last quarter of the year. During this period, KFC’s sales declined by 5% in the Middle East, while Pizza Hut saw a 3% decrease in sales.

 

Nestle CEO Mark Schneider also noted a sense of “apprehension” among Middle Eastern consumers towards Western brands since the onset of Israel’s attacks on Gaza.